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Jun 30, 2024
EastGroup Q2 2024 Earnings Report
EastGroup's Q2 2024 earnings were announced, showcasing strong financial performance and strategic expansions.
Key Takeaways
EastGroup Properties reported a strong second quarter in 2024, with FFO per share rising by 8.5% excluding involuntary conversions. The portfolio demonstrated resilience through high leased percentages and substantial year-to-date releasing spreads. The company expanded into the Raleigh market and continued development projects, reflecting optimism about future market conditions.
Net income attributable to common stockholders was $1.14 per diluted share, compared to $0.97 in Q2 2023.
FFO excluding gains on involuntary conversion and business interruption claims increased by 8.5% to $2.05 per share.
Same Property Net Operating Income (excluding income from lease terminations) increased by 5.3% on both a straight-line and cash basis.
The operating portfolio was 97.4% leased and 97.1% occupied as of June 30, 2024.
Forward Guidance
EastGroup estimates EPS for 2024 to be in the range of $4.63 to $4.73 and FFO per share to be in the range of $8.28 to $8.38.
Positive Outlook
- FFO per share increase over prior year excluding gain on involuntary conversion and business interruption claims: 7.7%
- Same PNOI growth: cash basis: 5.6% - 6.6%
- Average month-end occupancy - operating portfolio: 96.6% - 97.6%
- Lease termination fee income: $830,000
- Operating property acquisitions: $265 million
Challenges Ahead
- Reserves of uncollectible rent: $2.6 million
- Operating property dispositions (Potential gains on dispositions are not included in the projections): $35 million
- Development starts: Square feet: 1.9 million
- Projected total investment: $260 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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